SEC Gives Green Light to Generic Listing Standards for Commodity-Based Trust Shares

The Securities and Exchange Commission (SEC) has officially approved rule changes proposed by three national securities exchanges to establish generic listing standards for exchange-traded products (ETPs) that hold spot commodities, including digital assets. This decision allows exchanges to list and trade Commodity-Based Trust Shares meeting these standards without having to file a separate proposed rule change with the Commission under Section 19(b) of the Exchange Act.

Enhancing Innovation and Investor Access

SEC Chairman Paul S. Atkins emphasized that this approval strengthens the U.S. capital markets as the leading destination for digital asset innovation. By streamlining the listing process, the Commission aims to reduce barriers for investors, expand product availability, and encourage greater innovation in the financial sector. The move highlights the SEC’s intent to balance accessibility with oversight, ensuring that new digital asset products can enter the market efficiently while maintaining regulatory safeguards.

Jamie Selway, Director of the Division of Trading and Markets, noted that these generic standards bring regulatory clarity and certainty for investors. He explained that a rules-based approach creates a more rational framework for launching products, ultimately supporting both investor protections and market growth.

New Approvals Signal Broader Market Opportunities

Alongside the approval of the generic listing standards, the SEC has also greenlit the listing and trading of the Grayscale Digital Large Cap Fund, which invests in spot digital assets based on the CoinDesk 5 Index. Furthermore, the Commission approved the listing and trading of p.m.-settled options on the Cboe Bitcoin U.S. ETF Index and the Mini-Cboe Bitcoin U.S. ETF Index. These options will feature third Friday expirations, nonstandard expirations, and quarterly index expirations, giving investors more flexibility in managing exposure to Bitcoin-based products.

This series of approvals marks a significant advancement in the integration of digital assets into mainstream capital markets, underscoring the SEC’s role in shaping the future of investment opportunities while ensuring transparency, trust, and investor protection.

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